GLOSSARY OF TERMS - A

Free rent or early occupancy and may occur outside or in addition to the primary term of the lease.

The rate at which rentable space is filled. Gross absorption is a measure of the total square feet leased over a specified period with no consideration given to space vacated in the same geographic area during the same time period. Net absorption is equal to the amount occupied at the end of a period minus the amount occupied at the beginning of a period and takes into consideration space vacated during the period.

A natural person who has individual net worth, or joint net worth with the person's spouse, that exceeds $1 million at the time of the purchase; a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.

A measure of land equal to 43,560 square feet, 4,840 square yards, 4,047 square meters, 160 square rods, or 0.4047 hectares.

Direct access to, or actual possession of, tax-deferred like-kind exchange funds or other property by an investor completing a tax-deferred like-kind exchange. Receipt of the tax-deferred like-kind exchange funds by an investor during the investor's exchange period will disqualify the entire tax-deferred like-kind exchange transaction. (See also "Constructive Receipt").

Investment properties that need some type of corrective action to fully realize their value. The needed corrective action can be as simple as better management to a major rehab. While these investments frequently offer the greatest potential for profit they also have a high level of risk because the outcome of the corrective action is unproven as in a fully stabilized property.

The amount an investor uses to determine his capital gain or loss from a sale or disposition of property. To determine the adjusted cost basis for an investor's property, you must start with the original purchase cost. You then add the closing costs, cost of capital improvements and principal payments of special assessments (sewer and streets) to the property's cost basis, and then subtract any depreciation taken or were allowed to take, any casualty losses taken and/or any demolition losses taken to arrive at the adjusted cost basis.

Usually stated as a percentage of an assets under management or as a fixed annual dollar amount.

The return from an investment after the tax liabilities have been calculated and taken into consideration.

Payments made incrementally over time.

The tenant that serves as the predominant draw to a commercial property, usually the largest tenant in a shopping center. See in line tenants.

The total amount of principal and interest to be paid each year to satisfy the obligations of a loan contract.

An estimate of a property's fair market value that can be based on replacement cost, discounted cash flow analysis and/or comparable sales price.

An increase in the value or price of an asset

A category of investments that contain similar characteristics such as commercial office, retail or industrial properties.

Derived by dividing room revenue by the total number of rooms occupied by hotel and resort guests on a paid basis during the applicable period. Does not include revenue from food and beverage, telephone services or other guest services. See RevPAR.